Flexibility, firm-specific turbulence and the performance of the long-lived small firm

Power, Bernadette

doi:10.4324/9780203448434_chapter_18

Cited by 21 publications

(29 citation statements)

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“…The literature on exits of established young/small/independent businesses tends to emphasize either the vulnerability or the resilience of such firms; the former deriving from liabilities of smallness and newness pertaining to such firms, while the latter is typically attributed to their alleged greater flexibility and adaptability (Pal, Torstensson, & Mattila, 2013;Power & Reid, 2005;Smallbone et al, 2012). The evidence lends support to both views.…”

Section: Prior Empirical Insights On Effects Of Macroeconomic Crises mentioning

confidence: 93%

Much Ado about Nothing? The Surprising Persistence of Nascent Entrepreneurs through Macroeconomic Crisis

Davidsson

Gordon

2016

Entrepreneurship Theory and Practice

179

170

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We hypothesize that a major macroeconomic crisis triggers four alternative responses among nascent entrepreneurs: disengagement, delay, compensation, and adaptation. We also suggest that commitment and ambition (or “high potential”) moderate these responses. Our most important finding is the relative absence of behavioral crisis responses. However, crises may make high–tech founders become more likely to disengage, whereas the opposite holds for founders far into the process. Our study sheds light on the mechanisms behind aggregate effects of crises on the number and type of start–ups in an economy, and can guide future research on the effect of crises on nascent entrepreneurship.

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Section: Prior Empirical Insights On Effects Of Macroeconomic Crises mentioning

confidence: 93%

Much Ado about Nothing? The Surprising Persistence of Nascent Entrepreneurs through Macroeconomic Crisis

Davidsson

Gordon

2016

Entrepreneurship Theory and Practice

179

170

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“…In such conditions, small firm competencies are mainly oriented towards sales and technical production aspects (Pratten, 1991) rather than to formal control, organisation and customer service. As the organisational complexity of small firms is low they are able to operate using a relatively simple organisation structure, which may help them be more flexible (Fiegenbaum and Karnani, 1991;Power and Reid, 2005) and speedy in response to environmental changes than large firms (Hitt and Ireland, 1985). The same is true about their capital structure, which implies that there are fewer irreversible investments and sunk costs that may hamper adaptations (Yu, 2001).…”

Section: Attributes Of Small Firmsmentioning

confidence: 99%

“…It is conceivable that the attributes of small firms make them better equipped than their larger counterparts to respond to environmental turbulence (e.g., Fiegenbaum and Karnani, 1991;Hitt and Ireland, 1985;Power and Reid, 2005). Turbulence may even encourage managers of small firms to be alert to and explore new opportunities that arise in such an environment (Préfontaine and Bourgault, 2002).…”

Section: Attributes Of Environmental Turbulencementioning

confidence: 99%

Balancing the management control package of small, rapidly growing firms in turbulent environments

Nilsson

2010

IJESB

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Abstract:The thesis of this paper is that the management control package of small rapidly growing firms in turbulent environments needs to be based on a dynamic conception of balance. While many contemporary management control frameworks endorse balance as a guiding principle for management control, its specific features receive little attention and implicit conceptions are static. This paper first characterises the balance of a control package in terms of situational requirements on component selection, component weight, relations and coherence. The paper then examines the consistency between balance in contemporary management control frameworks and implications for balance derived from firm attributes. The conclusions suggest that by considering balance as a state and as an act, acknowledging requirements of balance and imbalance, and recognising situational and temporal dimensions of balance, we may advance the boundaries of management control research.

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“…In addition, according to Bryan (2006), training helps to sustain higher levels of productivity. In our model of export behaviour we measure the impact of human capital First, a number of studies (Keeble et al, 1991;Wood, 1991;Scheibl, 2001, 2002;Power and Reid, 2005;etc. ) argue that SMEs are more inclined to have flexible organisational arrangements than are larger firms, because of their limited scope of operations, well-understood relationships within the firm, relatively simple organisational structures, ease of accessing networks of firms, etc.…”

Section: Human Capital Related Factorsmentioning

confidence: 99%

Export behaviour of SMEs in transition countries

2013

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Abstract:Melitz's dynamic model of export participation is the basis of our empirical specification that accounts for a wide range of internal and external factors affecting the export behaviour of SMEs in Transition Countries (TCs). Using firm-level data, our estimates highlight the particular importance of the human and technology-related factors to the export behaviour of SMEs in TCs. Other important factors for SME exporting activities are productivity-enhancing spillovers from industry -especially vertical -linkages, firm size, ownership type, type of activity, the availability of external finance, networking through business associations, and market share. In addition, significant period and country differences are identified. This paper contributes to the transition literature by filling an important gap in the understanding of the SME internationalisation process and by identifying a comprehensive set of variables to explain firms' export behaviour in TCs. Melitz's dynamic model of export participation is the basis of our empirical specification that accounts for a wide range of internal and external factors affecting the export behaviour of SMEs in Transition Countries (TCs). Using firm-level data, our estimates highlight the particular importance of the human and technologyrelated factors to the export behaviour of SMEs in TCs. Other important factors for SME exporting activities are productivity-enhancing spillovers from industry -especially vertical -linkages, firm size, ownership type, type of activity, the availability of external finance, networking through business associations, and market share. In addition, significant period and country differences are identified. This paper contributes to the transition literature by filling an important gap in the understanding of the SME internationalisation process and by identifying a comprehensive set of variables to explain firms' export behaviour in TCs.

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Flexibility, firm-specific turbulence and the performance of the long-lived small firm

Cited by 21 publications

References 0 publications

Much Ado about Nothing? The Surprising Persistence of Nascent Entrepreneurs through Macroeconomic Crisis

Much Ado about Nothing? The Surprising Persistence of Nascent Entrepreneurs through Macroeconomic Crisis

Balancing the management control package of small, rapidly growing firms in turbulent environments

Export behaviour of SMEs in transition countries

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